Emanuel leaping or being pushed?

posted at 12:55 pm on June 21, 2010 by Ed Morrissey

The earlier report on Rahm Emanuel indicated that Barack Obama’s chief of staff wanted out of the White House because he has tired of dealing with ideologues. Perhaps some of those ideologues have begun pushing more than Rahm has begun leaping. Raw Story reports today that a proposal to scale back cap-and-trade legislation to only utility companies, the kind of compromise that Emanuel would likely either author or champion, will benefit one of Emanuel’s former employers in Chicago:

Rahm Emanuel, chief of staff to President Barack Obama, said in little-noticed remarks Friday that his administration will consider a climate change bill that only includes carbon caps on electric utilities.

“The idea of a ‘utilities only’ [approach] will also be welcomed,” he said, while “a wide range of ideas will be discussed.”

The proposal would be a boon to the oil and steel industries, as well as US manufacturers, who have argued that capping their carbon emissions would reduce their competitiveness overseas. President Obama has taken heat from liberals after a primetime speech on the BP oil spill failed to include aggressive proposals for climate change laws.

They won’t be the only beneficiaries, either. Forbes reported on Friday that passage of the scaled-down bill could add 30% to the share value of nuclear-energy producer Exelon — and Exelon has some friends in high places:

A watered-down, utilities-only climate change bill would greatly leverage the profitability of US nuclear power generator Exelon, an Illinois-based company that provides the largest share of power from nuclear reactors of any company in the United States. Exelon operates six active nuclear reactors in Obama’s home state.

Prior to joining the Obama Administration, Emanuel actually helped create Exelon by advising on the merger of two companies that merged. Exelon also employed senior White House adviser David Axelrod as a consultant.

The connection here is pretty tenuous. Raw Story doesn’t say whether Emanuel has any continuing interest in Exelon. Nor does it mention whether Exelon would have benefited in a similar manner from the passage of cap-and-trade as it exists today, which it probably would, although that passage is almost certainly impossible now. Nuclear producers will definitely see benefits from higher fees and taxes on electricity production based on coal, as those producers look for alternate sources of mass production, assuming that the legislation removes hurdles from building and operating nuclear facilities.

What’s more interesting is the timing and direction of this new revelation. The leak to the Telegraph could have come from Emanuel or from his opponents in the White House, as the ideologues may be wanting to blame Emanuel on the perceived slow pace of Hopeandchange on the Left. More likely, though, it came from Emanuel or his sympathizers who want to make his unhappiness with the direction of this White House, or lack thereof. This blast, however, obviously comes from people unsympathetic to Emanuel and perhaps specifically because of his resistance to the ideological march of the rest of the Obama administration.

Addendum: A utilities-only approach may let some industries off the hook for direct costs of cap-and-trade, but it’s still no bargain. They need to use massive amounts of energy for producing steel and making other products, and transporting them to market. Embedding the taxes and penalties of cap-and-trade even in just the utilities costs in the US will drive prices higher, erode buying power for consumers, and make us less competitive overseas. The utilities-only approach still hammers families regardless of whether their employer gets a small reprieve or not.

Rahmbo didn’t really want the job. He was dragooned into it because he was tough, had helped orchestrate the Dem takeover of Congress and he is a dual-citizen of Israel and the U.S. so he was supposed to reassure Jewish voters who didn’t like Reverend Wright or Obama’s other ties. I think he genuinely wants to go. Especially after all the infighting over who screwed up health care. Rahm is the closest thing to a centrist this Whtie House has. And he was supposed to be the consigliere who could work the levers of power for Obama. The left feels he has failed and they never liked his strategy of recruiting all those blue dogs in the first place. Remember this: http://www.huffingtonpost.com/2010/05/14/obama-took-a-swipe-at-rah_n_576625.html

There are always some high-finance shenanigans going on when you’re dealing with this bunch of thieves, but the big reason for the leak at this time is to put some distance between Rahm and Obama as Emanuel’s name will be coming up a lot, and not in very favorable ways, during the Blagojevich trial.

Believe it or not I think this first phase of Obama’s term was actually the centrist part. Because this was the part where he needed Congress (which included a bunch of blue dogs and moderates) to go along. Now he puts the pedal to the metal and goes for broke.

I think that he’s getting a lot of heat from Pelosi and Reid for the candidate recruitment he did to give the Dems the House and Senate in 2006, as neither is capable of managing the Blue Dogs he brought in which made the difference in 2006.

Of course, Pelosi and Reid don’t want to acknowledge that the reason the Blue Dogs are upset is that both have completely mismanaged their own caucuses and marginalized the moderates.

The principal reason that Rahm has to go, is that his boss needs a scapegoat. And to be a plausible scapegoat, it has to be somebody with the power of a Chief of Staff. For purposes of symbolism, Rahm will probably leave just about the time the oil flow stops.

Nuclear producers will definitely see benefits from higher fees and taxes on electricity production based on coal, as those producers look for alternate sources of mass production, assuming that the legislation removes hurdles from building and operating nuclear facilities.

Not sure what the laws are in the rest of the country, but here in CT the price Millstone Nuke plant charges has to be exactly the same per KwH as all other producers. So, if the price goes up for gas and coal plants here in CT, the Nuke plant gets to charge more to it’s customers, generating more money for it’s sharholders with no increase in costs to it. Hmmmm…….

He’s being fired or will be pushed under the bus with Grandma, Reverand Wright, etc. when Barry loses Congress next year. The Telegraph was preemptive a** covering on the Prima Ballerina’s part to salvage some of his reputation.

Addendum: A utilities-only approach may let some industries off the hook for direct costs of cap-and-trade, but it’s still no bargain. They need to use massive amounts of energy for producing steel and making other products, and transporting them to market. Embedding the taxes and penalties of cap-and-trade even in just the utilities costs in the US will drive prices higher, erode buying power for consumers, and make us less competitive overseas. The utilities-only approach still hammers families regardless of whether their employer gets a small reprieve or not.

This “utilities only” cap-and-trade bill is what is currently pushed by Senator Lieberman–cap-and-trade on electric power first, manufacturing in four years, transportation in 10 years. Still, even if ONLY electric utilities are subject to cap-and-trade, prices will increase across the board, because retailers need electrical energy to light and air-condition their stores, and food retailers use electricity to refrigerate perishable food.

But such a cap-and-trade proposal would do virtually nothing to reduce America’s dependence on foreign oil, despite what Obama said in his speech. Only about 3% of America’s electric power comes from oil, as compared to 50% from coal and 20% from natural gas, both of which would be adversely affected by cap and trade.

It’s not clear whether Rahmbo being forced out is a good or bad thing. Who would replace him?

Why would Obama’s puppet master jump ship? Obama is the despicable scum he is today because of his white handlers. It could be they are racists and are making Obama look bad to stop any chance of a black being elected in the future? Can you imagine what the insane racists are doing? They are screaming their idiotic rant that Obama’s epic failure as a president is proof that even the best the blacks had to offer is incapable of running the country.

I believe that most Americans, including minorities are more capable of leading this country than Obama and his traitorous Marxist ilk are.

I see others too are wondering about the Blago trial. I believe the entire administration is skating on thin ice – Obama, Rahm, Jarett specifically.

Oink on June 21, 2010 at 1:09 PM

I’ve always thought that Zippy’s trip to Chicago for Memorial Day was, in fact, a reason to get a handle on the Blago trial outside of DC. There’s bound to be some significant stink unless Blago dies of an aspirin overdose like that other Chicago pol. Well, actually, Chicago pols tend to drop like flies. High suicide rate…… wink, wink.

Can’t help but wonder if this has anything to do with the Blagojevich trial now going on in Chicago. Perhaps Congressman “A” is just the latest Obama corny to be thrown under the bus.

Tommy_G on June 21, 2010 at 1:07 PM

If Obama throws Emanual out of the Administration, couldn’t this get worse for Obama if Emanuel is free to speak his mind at the Blagojevich trial without worrying about his job? As in (for Obama), keep your friends close and your enemies closer?

From a political point of view I can see this working for Oblabla. The mental midgets out there will think taxing utilities is a good “compromise”. And it will be sold as costing “ONLY” $25 a year or something small like that for the average household.

What the imbecile American doesn’t realize is that will be $25 + another $2500 in the extra cost of every good and service provided that also has to pay the extra tax.

Obama has figured out one of the truisms in politics: AMERICANS ARE IDIOTS. The GOP still doesn’t get it and never will.

Rahm can probably read the tea leaves; he sees the numbers, and estimates this presidency is done. Plus, the investigation that may be coming into that Romanoff/Sestak business. He noticed that going to bat for obama buys one a seat under the proverbial bus …and he is not interested.

The connection here is pretty tenuous. Raw Story doesn’t say whether Emanuel has any continuing interest in Exelon. Nor does it mention whether Exelon would have benefited in a similar manner from the passage of cap-and-trade as it exists today,

You miss the forest for the trees Ed, there is always a “continuing interest” in family. Chicago’s/Illinois’ power structure is of a model of the Mafia, you never quit the family. Take some time to peruse John Kass’ columns at the Chg. Trib on the “Illinois Combine” and the way is functions, you may be in or out of any one office at any given time, but you are always “in the family”. You may think that this is but hyperbole, not so, Pols here die when they run afoul of the Illinos Combine & the Daley Machine, there have been 4 such mysterious “suicides” just in the last year. It is generally understood that if some actually offed themselves versus having it done for them, they do it for the sake of the weathfare of loved ones left behind.

Americans’ have no idea of the magnitude of a mistake they made when they installed the Chicago Crew in the Oval office, none. In the Kleiglights of DC they will tone it down some, but they will always bring a gun to a knife fight, its The Chicago Way and its all they know.

There is an excellent site called Hillbuzz.com which really has a lot of insight on Chicago politics and the players. I glean a lot of interesting info from there which sometimes sheds a lot of light on the “happenings” with the windy city bunch.

The connection here is pretty tenuous. Raw Story doesn’t say whether Emanuel has any continuing interest in Exelon. Nor does it mention whether Exelon would have benefited in a similar manner from the passage of cap-and-trade as it exists today,

FYI, Exelon aka ComEd was the power base of Thomas Ayers, Wilkliam Ayers’ father whose was a major figure of the mobbed-up Daley Sr Machine. His place was taken by his right hand man (name escapes me) at ComEd and all the boards upon which he sat. One of is at NorthWesten Univ. where he place Ayers’ wife Bernadine Dorhn as a Law Prof, even though she is a convicted felon and cannot practice law.

Family here in Chicago has many meanings, by blood line, by ideology and by mob association. And here they are all one and the same.

Americans’ have no idea of the magnitude of a mistake they made when they installed the Chicago Crew in the Oval office, none. In the Kleiglights of DC they will tone it down some, but they will always bring a gun to a knife fight, its The Chicago Way and its all they know.

Archimedes on June 21, 2010 at 1:33 PM

+1000 Anyone who knows anything about Chicago politics would never (well, some would) vote for a guy who is basically a piece of slime from that cesspool wrapped up as pretty package. It’s complete insanity.

I have a feeling that he will still be ‘operating’ 0bama for their masters; (Soros, et al.) Only now he will be doing it from behind the scenes, invisible and unaccountable to the public and to the new (hopefully republican majority) Congress.

Addendum: A utilities-only approach may let some industries off the hook for direct costs of cap-and-trade, but it’s still no bargain.

Are these people stupid. If they do this the amount of people that will go off the grid and install oil/coal heating/cooling systems as well as oil/gas generators would skyrocket. The utliites will be bankrupt in 10 years and the electrical grid will cease to exists as we know it. 100 years of progress will be wiped out in a blink of an eye.

1) Rahm is not radical enough. Hard to believe, but this administration’s destination goes way beyond the rank and file democrat’s liberal agenda.

2) Given #1, above, it will be necessary to replace all high ranking members with extremely loyal followers who pass some kind of idealistic litmus tests. In other words, purge the administration of all non-radicals. The euro style socialists need not apply as they are simply not radical enough. Look for more departures and replacements with hyper-radicals.

3) Alternate reason, this administration is so incompetent that the politically astute will be running for cover to avoid being soiled by the epic failure that is sure to occur.

Family here in Chicago has many meanings, by blood line, by ideology and by mob association. And here they are all one and the same.

Archimedes on June 21, 2010 at 1:45 PM

Follow-up II,

Some may think the mob & comminists to be an incogruous match, nothing could be further from the truth. Think about it.

A “Black Market”, with its exorbinant mark up, can only thrive in a controlled market. A free Market puts a Black Market out biz on price point alone. The more a market is “controlled” by thugs and criminals they more brutal they become, and with that brutality the greater their power. Take the USSR, the most controlled market of its time, produced the notoriously violent Russian Mafia, when the Kremlin fell the kleptocrats took over under Yeltsin. As Yeltsin introduced free markets he was replaced by Putin, who now represents the ultimate marrige of Mafia & State Power!

This is the road we are now headed, witness the take over of our banks, GM, Chrysler and the insurance industry, qand compare with the take over of Gazprom. Did not Gazprom then confiscate the holdings of BP, why yes, yes they did.

If anyone is truly interested to make the associtions of the mob-govt-communist connections in Chicago, the moist comprehensive archive of their doings can be found at a pro HRC Dem site called NoQuarterUSA.net and the Blogs of Professor Stephen Diamond and NewZeal.

Yep. Paulson got the ball rolling with the banks – no guns, but threats of demise, failure and disgrace. Chrylser was another violation of our bankruptcy laws. Bondholders were told what they would have to accept – screw the BK laws and procedures.

The list goes on and on. It’s terrifying.

I read an article over the weekend that said there is ~~~ $1.5 trillion of corporate cash sitting on the sidelines, and it won’t be committed to expansion or hiring because they are terrified of this administration. Rightly so.

That means that there will be no recovery in the private sector which we have already seen. Not unless the WH approves of it. And I doubt they will. This is all about killing the private sector.

Why is Rahm Emanuel departing the Obamanation Administration, Andrew Romanoff, Joe Sestak and Rod Blagojevich. Watch Rahm not only leave the Obamanation Administration but flee to Israel to avoid being compelled to testify regarding the aforementioned individuals.

Rahm is a criminal. In Blago’s criminal trial, it looks as bad for Rahmbo as for Blago.
I think Rahm Deadfish, Axelrod and Jarret have rock solid job security. They have too much inside dirt and power.

Why is Rahm Emanuel departing the Obamanation Administration, Andrew Romanoff, Joe Sestak and Rod Blagojevich. Watch Rahm not only leave the Obamanation Administration but flee to Israel to avoid being compelled to testify regarding the aforementioned individuals.

doriangrey on June 21, 2010 at 2:48 PM

A very interesting thought with many possible wrinkles, for Emanuel to pull this off Israel would have to agree not to extadite. Bibi cannot be particularly pleased with thge progidal son of Israel folloeing the snubs of the administration of which Emanuel would be fleeing. Knowing that Rahmmy is fully versed in the school of you can’t get somthin for nuthin, what might they require in exchange?

Could be dirt on the Obama’s true agenda vis-a-vis Irael and the territories, or even info that could sink the administration handed to conservative allies in the House and Senate that might provide fuel for impeachment.

Emanuels flight to Israel to protect the administration from various investigations may be thus a double edged sword.

assuming that the legislation removes hurdles from building and operating nuclear facilities.

The biggest hurdle is that no new facilities can open until a Nuclear waste repository is opened. Unless they open Yucca Mountain or authorize some Fast Breeder Reactors to reprocess the waste for use in the normal reactors fission based energy is going to die.

If these people had stayed off the streets they wouldn’t have been shot. It’s the fault of the victims not the thugs who pulled the trigger. We need to feel sorry for the thugs because our mean capitalist society made them do it.
/brain dead liberal.

Emanuel has always been closer to Bill than Hillary. Indeed, Hillary tried to get Emanuel fired as a White House aide in 1993 (reportedly because he was too abrasive with others), but Emanuel refused to leave until the president personally told him to pack his bags. Bill couldn’t bring himself to do it.

Could be dirt on the Obama’s true agenda vis-a-vis Irael and the territories, or even info that could sink the administration handed to conservative allies in the House and Senate that might provide fuel for impeachment.

Emanuels flight to Israel to protect the administration from various investigations may be thus a double edged sword.

Archimedes on June 21, 2010 at 3:07 PM

Dont get it f’ed up, Israel’s attitudes regarding this situation will and should be based not on the impact to the Obamanation Administration, either positive or negative, but on Israel’s national security interests.

Israel’s willingness to allow a Israeli citizen to return to Israel and refuse to extradite that citizen will be solely based on what the Israeli’s consider to be in their best interests.

If they believe that helping the Obamanation Administration sweep little pesky illegal details under the carpet will gain them desired strategic advantage, then Rahm will be granted political asylum.

If the Obamanation Administrations options suddenly revel themselves as, the US turns a blind eye to Israel bombing Iran back to the stone age or Rahm Emmanuel arriving in Washington DC in handcuffs to testify before a Grand Jury and Congress, what do you think is going to happen?

Exelon came to be by Commonwealth Edison selling it’s coal fired generation capacity to Midwest Generation and creating an “independent” Exelon for it’s NP plants. ComEd retains transmission rights, so now can double dip on profits, once for generating the power, and again for distributing it, all in the name of competitive market policy.

Axlerod was behind Consumers Organized for Reliable Electricity (CORE), an astroturf organization against a proposed statewide freeze in electricity rates that presented itself as grassroots but lobbied for ComEd to politicians (with cash) and simply lied to the public.